An exchange-traded fund whose holdings are chosen by a portfolio manager according to a stated strategy, rather than being set by rules designed to track an index.
Covered in: Active ETFs (book)
Related terms
Go deeper: books by Will Lee, CFA
For ETF product managers, issuers, capital markets teams, and allocators: capacity, execution costs, and liquidity trade-offs when active strategies run in an ETF.
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Disclaimer
This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
All views expressed are the author’s own and do not represent the views of any employer or affiliated organization.